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Exposure to weather shocks: A comparison between self-reported record and extreme weather data

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  • Nguyen, Giang
  • Nguyen, Trung Thanh

Abstract

Analysis of rural vulnerability to weather shocks requires an accurate exposure record. Both self-reported and weather data records have been used with potential biases. We are the first to evaluate these biases by constructing two comparable records: self-reported weather shocks from a rural household panel dataset and measured weather shocks from weather data. Despite their positive relationship and similar average welfare effects, the two records display a large discrepancy. Being endogenous, the self-reported record introduces the attenuation bias in analysing non-farm labour allocation in response to shocks. We suggest to instrument the self-reported shock with the measured shock for better analytical quality.

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  • Nguyen, Giang & Nguyen, Trung Thanh, 2020. "Exposure to weather shocks: A comparison between self-reported record and extreme weather data," Economic Analysis and Policy, Elsevier, vol. 65(C), pages 117-138.
    • Handle: RePEc:eee:ecanpo:v:65:y:2020:i:c:p:117-138
    DOI: 10.1016/j.eap.2019.11.009
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    More about this item

    Keywords

    Rural households; Non-farm diversification; Weather shocks; Self-reported biases; Vietnam;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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